Pirelli Real Estate saw its losses widen to EUR 58 mln in the first nine months of the year from EUR 13 mln a year before. Revenues dropped 33% to EUR 199 mln in the third quarter, from EUR 296 mln in the same period in 2008.
Pirelli Real Estate saw its losses widen to EUR 58 mln in the first nine months of the year from EUR 13 mln a year before. Revenues dropped 33% to EUR 199 mln in the third quarter, from EUR 296 mln in the same period in 2008.
The Milan-listed property group said that it 'continues to work on completing the turnaround announced in its three-year plan for 2009/2011'. The company embarked on a cost-saving plan in 2008, and generated savings of EUR 47 mln in the period to September 30, judy EUR 3 mln short of the full-year target for 2009 of EUR 50 mln, it said last week. Pirelli RE has revised its annual savings target to around EUR 65 mln, it added.
During the third quarter the company strengthened its financial position through a capital increase and an agreement with eight lenders for a new EUR 320 mln credit line due for repayment in 2012. Pirelli RE completed EUR 658 mln worth of sales in the first nine months of 2009, and confirmed it intends to meet its year-end sales target of EUR 1 bn.
Looking ahead, the property company expects full-year EBIT (earnings before interest and tax) to amount to a loss of between EUR 25 - 35 mln.
